Gold holds stable above $1330 level

Gold struggled to build on overnight rebound from 7-day lows and surrendered early tepid gains to the $1335 region. 

A continuous improvement in investors' appetite has been denting demand for traditional safe-haven assets and dragged the precious metal to multi-day low level of $1322 on Tuesday. The yellow metal, however, managed to rebound to $1332 amid a modest US Dollar pull-back, which tends to benefit dollar-denominated commodities. 

With Asian equity markets extending the relief rally, fading safe-haven demand kept a lid on any further up-move for the metal through early Asian session on Wednesday. The market even shrugged off N. Korea's latest threat to accelerate its plans to acquire a nuclear weapon, following a fresh round of sanctions imposed by the UN.

Later during early NA session, the release of latest inflation figures from the US might influence markets expectations over the Fed's near-term monetary policy outlook and eventually provide some fresh impetus for the non-yielding commodity.

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Technical levels to watch

Weakness below $1330 level is likely to find support near $1327 area, below which the metal could drift back towards $1322-21 support area before eventually dropping to $1314 horizontal level. 

On the flip side, sustained move above $1335 level could get extended towards $1340 level, above which the commodity is likely to dart towards $1349 horizontal resistance.